I'm not saying parents should never read fairy tales to their children, but it's important to notice gender stereotypes in these stories. Examples are as follows:
--lead female character is usually not that bright
--lead female often is waiting for her prince to come rescue her
--lead female is usually slim and attractive
--lead female is often shown being submissive, cleaning the house, etc
EVIL characters almost always are UGLY.
I'd much prefer sharing tales with my children that feature strong female characters such as Pocohontas and Mulan. I don't want my daughter growing up reading stories about women who are submissive, and I definitely don't want her thinking that women are only worthy if they are beautiful. Girls are recognized for their appearance while boys are usually recognized for what they DO. Harmless comments that focus on a little girl's hair, dress, and shoes teach her that people notice her for her APPEARANCE rather than acts of kindness, intelligence, etc...
I wrote a whole paper on this in grad. school. Interesting stuff.
I loved fairy tales. The whole idea of princesses and kings, evil witches and forests - it was so fun and creative. Now, I think of it the same way I do Santa Claus and all those myths: harmless and entertaining.
But, like anything, they can be made into something offensive and degrading, I guess. I thought playing with Barbies was fun - and I did struggle with my weight and body image growing up - but I think my struggles really did stem from my mom's struggles, not from the dolls themselves. I overate and didn't exercise - it was a role modeling thing for me, not a fairy tale or Barbie doll thing.